The latest sales numbers for the Atlanta FMLS recently came out. Overall, the total number of closings in May were down 28.5% vs. May of 2006. But the average sales price went up from $263,087 to $264,487.
The reason for this increase in average sales price was due to the million dollar plus homes being a larger proportion of the total number of homes that have sold. In May of 2005 there were 50 homes over one million dollars sold which accounted for 4.36% of sales. In May of 2007, there were 97 of these homes which accounted for 9.12% of total sales.
My personal observations confirm these numbers. While driving around the ritzy neighborhoods north of Buckhead, I've seen many under contract signs.
The big question that I get asked all of the time is "Who are all of these people who can afford to buy these million dollar homes?" It's not a market that I've focused on, but I do know many people who live in million dollar plus homes. They are usually just normal, nice people who have a successful business and have made some very good financial decisions. Many of them are also lawyers.
I will eventually be one of those people. So when you hear that question, you'll be able to say you know a nice guy who made his money by helping many people find the home of their dreams.